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tv   Fast Money Halftime Report  CNBC  June 15, 2012 12:00pm-1:00pm EDT

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they laid it out very, very strongly. >> bertha coombs covering the gupta trial. rajat gupta, forger head of mckinsey found guilty of four counts of conspiracy and securities fraud. that does it for us on "squawk on the street." we'll see you monday. right now time for the fast money halftime report. oh, yeah four hours to go on the trading day. a sea of green on wall street despite the greek re-election. the dow up 64, s&p up 7 points, arguably at a critical level. is it short covering or something more profound. we'll check on oil or gold as well. $83.71 on wti and gold up 6% for the week still making gains. no excuses. the aim of this show over the next hour is to make you money and this is what we're
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following. greek tragedy number one, we're trading possible outcomes from the big election sunday night and how you should position ahead of the big event. you could get 10% upside on the s&p, coal implosion, has it bottomed yet. a top ten analyst will give us his take on what you should buy now. starbucks cools down. is the momentum coming out of this coffee favorite? if so, is it time to short. welcome to halftime report, i'm simon hobbs, let's go to the traders see what they are watching. >> steve grasso, waiting to see if 1335 holds. >> i'm watching the rails. they continue to fly to the upside. i think they continue to do so. that tells a lot about the u.s. economy. >> i'm john watching both netflix and zimmer because of unusual stock and option activity. >> i'm b.k. and i'm not on watching the greek elections but egyptian elections this weekend. could be a game changer in the
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middle east. >> okay. so we're all gathered for fast money halftime report. let's kick off with greece. bank of america has a fascinating report out today which basically lays out the scenario very simply as to what might happen sunday and how you should play it as an individual. to that end we're joined from bank of america by -- we have a slight technical problem. we're not able to cross to bank of america at the moment. let me go around the horn and chat to everybody about how they are positioned for the weekend. steve grasso. >> it's obvious by the market's reaction leading into both yesterday and today, leading into the weekend that we're probably going to see that pop happen. get a quote, unquote, stable outcome on sunday night. but it remains in question do you sell that pop? i think there's probably enough on tap next week to let it ride maybe a couple of days. i think you'll see the strength
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there. above the 1335 level on the s&p makes me think a little more strength for 2 to 5% move, bank of america thought that. >> you made a big deal. >> what's working now, great trade in the commodities area. we've seen some of the safer areas as far as technology and some of those names we talked about ad nauseam. pharmaceutical names as well. financials we have good days, we have bad days. i look at that value tilt index, trading upside for the majority of the afternoon, at least the morning into the afternoon as the s&p has gone higher. tells me there's a lot of jitters out there. >> b.k., what do you think? >> i'm mostly in cash, i do have a desperadoel on the u.s. market buying puts and calls on this. i don't have a clue how the greeks are going to vote. i do know the market has worked
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itself into the place where the worse things get the more potential or more hope for a bailout, whether it be from the ecb, the fed or globally coordinated easing. i think if anything you want to be biased to the long side, which i am via my straddle. still holding lots of cash. >> bank of america says a potential for 10% gain on the s&p. in that case b.k. john, that's your view. >> b.k. mentioned hope. a lot of us when we talk about greek mythology you focus on pandora's box and the bad things that came out of it. one good thing that came out of that box was hope. that's what bank of america is betting on with this call, simon. i think it's not surprising, just as pete said, to see the markets climb and get through steve's upside resistance areas. as we do that to see vix go up. why is that? i think more people will be purchasing protection because of it. >> interesting. guys stay with us.
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let's get the latest from bertha coombs on another big story breaking this afternoon. she's at the federal courthouse after a kblty verdict delivered to former board member rajat gupta. back to you. >> reporter: 63-year-old rajat gupta found guilty of conspiracy and three counts of securities fraud involving tips to former galleon chief raj rajaratnam about goldman sachs during the height of the financial crisis. unlike some five dozen cases that have already come in this long-running insider trading case on wall street, this one did not hinge on wiretaps of the defendant. however, there were wiretaps where he was caught in one case talking to raj rajaratnam over an unrelated matter. the prosecution saying that established the fact they had a relationship where they were discussed board matters of goldman very casually. in one case prosecutors saying as though we were talking about
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last night's yankees game. those charges involve up to 25 years in prison for raj rajaratnam. we have a state from the u.s. attorney for the southern district saying rajat gupta once stood at the apex of the international community. today he stands convicted. he achieved remarkable success and stature. he threw it all away. in fact, the defense had said, why would a man in his seventh decade of life with so much that he'd accomplished, so many connections, so much achievement go ahead and tip off a hedge fund manager. the jury did not buy that argument finding him guilty today. >> presumably bertha, he will emerge from the doors behind you. the man is not as yet in prison. >> yes, i believe that he will. his lawyer, we think, will come down and speak to us. the jurors have indicated they
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are willing to speak to the press. they will do that in the courtroom. so we're hoping to learn from them just what was the most devastating piece of evidence in this case. >> the sentencing still to come. for the moment, bertha, thank you very much. let's continue to our analysis on what will happen sunday night and welcome to the program, strategist at bca research. thank you for joining us on the program. the research note is great for its simplicity, the way you lay out what people can expect. let's kick off with the base case scenario, the election brings a pro e.u. government. what, then, happens to the markets in your view? >> well, it will likely provide a temporary tail wind to the markets, potentially also to the oil prices. but the reality is that then we need to really be watching what the europeans give this new centrist government, because the political capital of the government will depend on
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whether or not they manage to win any concessions to the bailout package. >> so what is the potential upside here do you see for investors in the united states? >> well, the upside is that greece is removed. it's removed from the radar for at least the next three months. the reality, however, is that it can come back. that's really the danger here, because if the current -- if this new government isn't given some sort of alleviating concessions from the europeans, you could have the social angst in greece return. so that's something we need to be watching. otherwise it can just be a temporary relief. >> this show is called fast money, about making money in the short-term. outline for me in which you could get a substantial bounce on the stock market in the united states. >> well, you could have an
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immediate election result that gives new democracy and central right and left enough seats to form a government and there is an immediate reaction from the europeans not just in greece but also on june 28th and 29th about a banking union as well. so right now there is a number of conditions that can happen that can be very positive. our research has for the past month and a half been stating that the greek vote would ultimately moderate itself under extreme pressure both dom particular and foreign. so we've essentially already stated that the likelihood of a positive result in greek elections sunday is a favorable one. >> even though you get a quote, unquote, positive result out of the greek elections, it's still a whole new regime coming in, even in the best case scenario, no? >> won't be a whole new regime. it would still be the same people that have really brought greece to this crisis.
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that's actually the danger of it. not that it's a new regime but a lot of the old guard which means the social angst aspect is critical to the story because it can return. if this government loses political capital to govern -- >> i guess my question is, you're still going to have 40% of the people basically unhappy with the election. we've seen money coming out of the banks already. given the bank's buffer is relatively small to the way we've seen percentages of money coming out of greek bank, how long are we stable for, three-day or five-day? i heard you say three months. i'm going to take the other side of three months. i think it's way too fluid for that. >> actually european central bank can keep greece afloat for a millennium. this is a small problem. you can have emergency liquidity assistance, e.l.a. really they can keep pumping money to greek banks. that's not a problem. they can have as much liquidity
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as they need. the issue is whether a crisis in greece causes some sort of contagion to the rest of europe. thus far we're not actually seeing that. we don't have data from europe and spain. we have anecdotal from spain but that's probably more related to the spanish problems themselves, not to greece. so the question then becomes why is greece such a critical situation and whether markets are already getting over the greek problems. >> marco, i think we have the initial exit polls around 11:00 eastern sunday morning, so we should know in good time. thank you for joining us. marco joining us from montreal ahead of the election results sunday night. make sure you tune in on sunday to catch michelle caruso-cabrera, "a greek tragedy" takes you inside the debt crisis. midday movers you might not yet
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have on your radar. off with a drop, citigroup. >> citigroup is the most correlated according to bernstein, 86 correlated to european banks. i think it's just reacting right now and could be something that really could pop over the next couple of weeks if marco is right. >> usg another pop. b.k. >> positive comments, a little off from jpmorgan today talking about how their pricing is sticking, price increases increasing. name i'm still on, still like. >> we've seen it. all hinges on epa at this point. not saying it won't go up, but really volatile. if you look at the chart i'd say away. >> bump for bp. john. >> a few weeks ago we talked about this one $36 stock outperforming in the energy space. today up another 3%.
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look at it exxonmobil over the same period, double the performance, double the french company, triple the performance. bp doing a lot of something right and the stock continues to react positively. >> thank you, john. nat gas coming off its best performance since october 2010. is this the perfect time to go short or buy in? we'll trade it after the break. lots more, halftime. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. our cloud is made of bedrock.
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concrete. and steel. our cloud is the smartest brains combating the latest security threats. it spans oceans, stretches continents. and is scalable as far as the mind can see. our cloud is the cloud other clouds look up to. welcome to the uppernet. verizon. giving up gains after
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yesterday's dramatic spike. commodity as you're aware down 17% so far this year. have we seen a bottom? michael harris, director of trading at campbell & company with us to break down the technicals. good morning, what's the view. >> thank you very much for having me. i think if you look at the one-year chart, we're still in a down trend. our models have been following that. medium to long-term still in place. yesterday's pop dramatic, 14%, one of the biggest moves in the last two years. shorter term models reacted, gone and established a long position. overall firm wise, although we're not as short as a few months ago, we're still holding onto the short position. >> it is a major move. what would have to break to convince you the trend changed. >> if you look at the charts, 255 is certainly a crucial
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level, right around where the long-term one-year down trend is coming in. we've flirted with that level today, a high of the session. you really have to look at where we close today. if we close north of 255 going up to 260, more systematic players like campbell will be covering short position. that may start a new trend to the upside. >> b.k., are you a buyer? >> i am a buyer of natural gas, especially after a 15% increase. it's barely even down today. i would have thought it would be down 5% today. my question for you, sir, on a systematic basis, if you know everybody else is going to have to start covering shorts, do you guys ever get in front of that tidal wave coming? >> no, 100% quantitative, we're always going to let our models make that decision for us. from a macrostandpoint, one thing to focus in is demand for utilities. ia estimated up over 20%. that was the real shock yesterday. switching from coal over to gas
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is a little more pronounced than people thought. that's one of the reasons we didn't see supply numbers we were looking for. have to look at data, next week ia data to confirm changing demands on supply and demand side. >> michael right now as you're looking at natural gas itself, t. boone on earlier talking about next year at this time over $3. do you agree with that position? >> from a modeling perspective, still on a one-year down trend. i think my view might change in the next few days if wets to crucial levels. overall downward trend, natural gas. the real question is a lot of traders got washed out. as they look to establish new position will they decide to take a punt on the long side or get back in, now 14% higher. >> michael, where are we on oil now? >> oil wise, we're firmly in a downward trend. the market is off almost 25% since the highs up at 110.55.
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that's been a great trebd over the last few months, riding it to the downside. as you've already highlighted on the program i can't point to oil fund men's to watch. you've got to watch greek elections sunday night, risk on risk off on the asian open based on the results of those elections and that's going to drag outwith it. >> thank you very much. michael harris joining us from campbell. john and jerry, where are you? >> given the success of the shale projects, simon, increased liquids and nat gas. that's what's weighing on this more than anything else, now that the aubrey mcclendon situation may be straightened out, one of those big precious through chesapeake hammering it down. i think that hammering continues, perhaps not as hard because of like i say increased production out of there. >> is your brother right? >> john and i tend to agree with
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each other, we look a lot alike. as far as energy play when lou at the last week and a half in our world, options world, we have seen nothing but people attacking to the upside in names like energy earlier in the week. $0.30%, now at $0.90, not a bad return. bp, oih, across the board. ne. s v we had that sector as our hottest. the last couple of weeks options playing upside. >> go to the other side of that trade. coal stocks have taken a beating at the hands of the rock bottom natural gas prices. peabody and alpha natural resources are down, as you're probably aware, double digits for the year. have these stocks found a bottom. ranked number one for the sector by the financial times poll, what's the view, what's the trade? >> what we've got this year is a technical term in the coal
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industry, what we call too much coal. i think if you've got it -- >> can you break that down for viewers? >> well, right now, at the utilities today sitting on $205 million. typically if they are targeting 50 days of inventory, that's only about 120 million tons. that means for the next year working down of excess inventories. i think that's going to come really at the expense of the firms in coal at the high end of the cost curve. in the u.s. today there's about 1100 active coal mines. the top 10% of coal mines in size produce 78% of the coal. so what we would suggest is for investors is that it's still time to be reasonably cautious. if there's value, it's in firms large scale lowe cost mines. those are the ones making money in the downturn. focus on peabody energy in the
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west and firms still making money in the downturn. >> yesterday tudor came out with a risk reward on call names. they through in anr, you shared cnx was your favorite pick i would get. as far as risk reward, how come walter doesn't pop up there, wlt? >> walter is a firm really purely in a different market, export metallurgical market. coal is natural gas demand, a casualty of five years, seven years of weak power demand. walter is in a separate boat. so it's going to be very driven by issues like chinese steel production, australian -- >> you're still confirmed with nat coal prices haven't bottomed at this point. >> visibility on nat coal it's not as good as we can say in the
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domestic thermal markets, pricing below for three quarters now. >> b.k. >> hey, you talked about utilities having big inventory. from your perspective, do you have an idea whether utilities bought this call? what i'm getting at, are they losing money burning this coal they bought at higher prices? >> well, i guess i'd say as far as the utilities go, they went into 2012 with a pretty full book of business. so sure they bought coal at higher prices than what we see in the spot markets today. that's going to always be the case. as far as losing money, the utilities are different regulatory regions in different states. for the most part we wouldn't say they are losing money by burning coal at these levels. what we would be concerned about from coal supplier, as some of these higher priced coal prices roll off at the end of 2012, if
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you're operating a higher priced coal mine and repricing the market in 2013, you might not be able to cover cash cost. what we think will happen on the supply side is going to be more coal mines coming down. so far this year 8.1% on coal production. >> before we let you go, if cnx is your top pick, buy, what's the upside on that? >> i think you could see -- if we were to see some recovery, if t. boone is right $3 plus natural gas prices in a year and if we were to see an ongoing attrition of the high cost coal mines, we're expecting something in the upper 40s for c inform x in a 12-month timetable. >> paul, thank you for joining us. joining us from stifel nicolaus. from baltimore. thank you very much. let's trade it. b.k. >> i have no desire to be in coal stocks at all. plenty of other places out
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there. maybe a long-term play people going to continue to burn coal, i guess so. there's plenty of other opportunities that are moving and have growth. >> you have no desire to be in a gym either but we didn't hold that against you. >> that's just not right. >> john, where are you on these coal stocks? >> well, as i said with my outlook being that the shale plays will continue to outperform as far as delivery of both liquids and nat gas, that's going to put pressure on the coal plays that are the steam coal. as far as metallurgy, on any kind of a flush we might get here. >> i think we'll we've seen flush in walter, john, but you can use the options better than you ever could before. premiums are extreme. i've been rolling every month for the last over a year now and taking off $2 and $3 every month or so, simon. to that point, yes those coals have been beaten up. if you're using options properly
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you can make money. >> let's look at zimmer holdings which appears to be jumping. john, i'd appreciate your comment, zimmer making now substantial gains. what are your thoughts. >> i guess according to our friends, biomet owned by blackstone put out earnings during the day -- >> guys, i have to break in. forgive us. we have rajat gupta emerging from the courthouse in the wake of that guilty verdict. rajat gupta found guilty of four counts of insider trading. bertha coombs with us at that federal courthouse in manhattan. bertha. >> reporter: simon, as a reminder he was found guilty of one charge of conspiracy, three counts of tipping off his colleague raj rajaratnam when it
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came to sensitive issues he had learned as a board member on goldman sachs. galleon fund trading on sensitive issue by investment warren buffett in 2008, two counts of that, found guilty of those. also on a third count involving tipping off raj rajaratnam gold man with a loss as a public company. a big witness for the government, did tell the jury it was board policy not to discuss board discussions. so that is something that clearly was very powerful for this jury. we'll see if the attorney will make a statement. during closing arguments he got very, very emotional, simon. apparently one of his big moves
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at the end is to say, look, the united states versus my defendant but the united states still wins if justice is done. in this case the jury shows united states argument over this. >> it's an extraordinary situation. have you ever seen a man in this position or this reputation going down this way? >> no. the last couple of years as we've watched throughout the crisis, financial crisis, that's obviously elevated everybody's attention to what's going on in the marketplace. a lot of folks over the years have been calling for somebody's head. this is another example of going for somebody, seeing somebody go away like this. obviously the decisions along the way are very, very tragic and unfortunate. >> we wait to see if his lawyer, his attorney makes a statement to the press. this an extraordinary situation, part of a big drive, of course, from the federal government into the hedge fund industry, steve.
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>> it's always shocking to see poor judgment when you see professionals at this caliber. i think all of us on this panel are extremely shocked at it. i've never seen anything like it before. there's so many eyeballs everywhere with social media, phone conversations everywhere. you can't turn around with people watching you. i'm extremely shocked in this day and age to see behavior like this. >> coming up on the "halftime report," is starbucks losing momentum. a call roasting starbucks today. stay tuned to the "fast money halftime report." how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today
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♪ ha ha! the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us.
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our top three trends into the weekend. microsoft will buy business yamer for $1 billion according to a "wall street journal" piece. >> it's one more leg of the whole process microsoft is trying to get themselves enveloped into this whole social media world. they are do so in a smaller way. a billion dollars to microsoft is nothing. this is a company giving you 3% dividend yield, trades in single digits. >> i need to interrupt you. we have the attorney for rajat gupta speaking after his client was found guilty on four counts.
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>> wiretap we challenge and continue to challenge. he was acquitted on accounts where there were no hearsay wiretaps of mr. raj rajaratnam. we believe in mr. gupta's innocence. we continue to believe in mr. gupta's innocence on these charges and continue to fight for his innocence. he's an honorable man. >> will you appeal? >> this is round one. judge allowed us to make motions, which we'll make with him. if they don't prevail, obviously we'll appeal. >> what did mr. gupta say? >> i think i've said everything i've i'm going to say. thanks for your courtesies.
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>> the inference from gary naftalis, there will be an appeal. let's get back to southwest airlines falling after traffic declined over 2% compared to the same period last year. b.k. >> no love here especially for the whole airline industry you're starting to see traffic numbers decline. across the ocean traffic is declining, latin america is declining. it's not just domestic. airlines have always been a tough trade. i don't think they are getting any better now. stay away. >> let's not forget, guys, today's quadruple, they all expire. i assume you'll get volatility later in the day towards the end? >> yes, simon. you'll also get an extension over the weekend. the pit behind me is the vix pit, that's the only place options on the vix are traded.
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those girs, their expiration is wednesday. even though you're accurate the quadruple witching, the options carry over to wednesday next week. that's why they have seen an extension of interest in those. it includes collection. >> next daytraders starbucks, report that suggests momentum trade over for starbucks. david palmer analyst, he covers them, joins us on the call line. >> our view is starbucks stock may move sideways in the near term as a result of modest slowdown for same-store sales growth and modest provisions happening now. that's partly a result of weak europe demand the company highlighting and partly a result of the fact that the analysts are coming to grips with the fact that coffee price relief is a little bit later than we would have thought just a few months
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ago. >> i'm trying to get a handle on the size of the move you're anticipating. i'm assuming this is not a short as far as you're concerned. >> no. it is not. we're sticking with that. this is a buy rated stock. we love it's trading 22 times calendar 13. 20% average growth is what we're forecasting the next few years. at this capsize, a big company like this is going to outperform at that growth, multiple, one times pe to growth. the problem is in the near term those negative eps and modest slowdown in americus division, a modest slow down. after that point, it is going to be a great time to buy. >> david, can they with the new summer launch, drinks, fresh juices, as well as what they are trying to do as far as that
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bakery acquisition. are those going to defend starbucks now and push it to the upside? >> you bring up great points. in fact, the summer coffee beverages for not just starbucks but for dunk in and for mcdonald's had a huge impact, seasonally outsized impact in the last few years if those summer beverages work to the same degree again, perhaps we'll get it going. in addition june 12 they rolled out k cups in their stores. that should add to their comps in the months. some things to look forward from same-store sales reacceleration impact. >> thank you for joining us. david palmer from ubs. who is trading -- stock coming down from a high of $62. >> i called it selling against this, dipped in got below 55 somewhere in that range, i'm
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obviously underwater, calls against it, something i will do. i have no plans getting rid of this position. >> pete, aren't you concerned that same-store sales slowed down when they have new products coming in? seems to me maybe there's an execution issue there. >> i don't know if it's execution. all europe related right now. i don't think this is a u.s. problem. i think they will deflect some of that slowness.ss. i continue to like it. >> coming up on the halftime report a fast money trade. listen to dr. j when he recommended this stock a month ago, you would be up 200%. we'll reveal it and see if he's sticking with it after the break. k. optionsxpress, where you can trade your favorite products,
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>> if greece moves out of the eurozone it will have catastrophic consequences, especially in the beginning. people won't have access to food, medicine, gas, all the basic necessities. having said that, it may be a better way to grow into a better tomorrow. >> three hours and 19 minutes to position for the results of the greek rerun of its election sunday night. steve grasso, what should people do.
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>> we talked last night about buying industrials, probably the best bet is xlb. if you look at xlb, it's going back and forth. we don't have conviction either way there. xli has shown ability to rally and pop a little bit. i think the biggest bang for your buck, if you think it's going to be good stability, good headlines out of greece, maybe xlb is a shock. >> was it you or your brother buying italian debt. >> it was john. >> did you think that was a good trade? would you repeat it now? >> i don't understand the stuff. too complex. but to steve's point, i do like materials as well. i think coal is oversold. the copper equity names are trading right now, everybody talking about the direction of copper going down. equities themselves trading well looking at southern copper trading over $30 a share. it's trading very well despite the fact of ups and downs. >> that's a china play. >> it's potentially a china play. >> a risk on play.
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>> a risk on play, a reaction off of europe. >> john, let me pick up that subject of the italian debt. we're hoping to have a guest on shortly who thinks you should buy spanish corporate debt at the moment. would you meddle in that? >> i imagine i would, simon. i'm waiting for that blood in the streets, to be greedy when others are fearful sort of warren buffett quote. that's what i'm waiting for. you are getting that and you've been rewarded in the past, whether greek debt or italian debt when they made big spikes. you were able to take advantage of some of the fear in both of those. i bet that's the same thing that the analyst that's coming on is going to be citing. as far as exposure in europe, talked bought ges because of exposure to europe if the right things done, mcdonald's mcd is a better play. >> john, how fearful are you about the same reaction we had with spain coming out of that sunday night just this week. monday where we see the markets
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spike and gives you back the same day. are you looking for basically a did he event coming out of greece or a couple a day event. >> if we can get above your levels, grasso, whether that's 1345 i think is your level, just above where we're at, as far as that would be an upside resistance level, if we can pierce through there and blast into 1350s, 1360s i don't see a lot stopping us from 14 as far as s&p. >> let's bring in contrarian investor who co-manages billion dollar loomis sales bond fund. she joins us now to describe why i believe you're buying spanish corporate debts. >> we are. we think it is a good buying opportunity here. mainly because the issues in europe are with the sovereign. there's a sovereign debt cries
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that means corporate. if you look at underlying cash flows and look at the kind of companies that might be attractive, i'm thinking infrastructure companies are attractive. the lights will stay on, people will use their phones. >> infrastructure companies are heavily exposed to bad property loans potentially. i mean, you're really playing with fire, aren't you? >> infrastructure companies i'm thinking more telecons and utilities. >> i thought you meant acs and construction companies. >> much more stable. >> telephonica, what names are you buying? >> i can't tell you the names, but if you think about the businesses you'll have a good sense. what we're looking for are individual companies that have cash flow that isn't dependent on domestic economy. a lot of companies expanding internationally, also not
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depending on domestic banking group. they rely on an international banking group. having that overseas exposure is really acontractive. >> is this a speculative play because you think they are going to bounce hugely or a yield play? >> it's not speculative. i think it's a good total return play. these are investment grade companies so that to me is not speculative. a yield opportunity, compared to credit in the u.s. it's a significant pick up, u.s. high-yield levels without taking any currency yield as well. >> wait, kathleen, you are taking currency risk if spain leaves the eurozone. >> yes, dollar pay, there is that risk our thesis is the union will hold. what has me very focused is spain is too big, too important a member of the union.
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i think what's going on now becomes a trigger point for the union. >> congratulations putting your head above, kathleen gaffney joining us. see what winning currency trades are likely to be as a result of what's going on in spain and greece sunday on money in motion live at 5:00 eastern. coming up on the "halftime report," the chatter on twitter into money on your pocket. that's trading what's trending next on the "halftime report." so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪
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coming up at the top of the hour. more breaking news on the rajat gupta. how will the breaking news affect wall could have a big impact on our economy. we have live coverage from the white house. and what behind the markets this week? we'll talk about that. "fast money halftime report" will be back in just a minute. we understand the importance of your goals. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch. laces? really? slip-on's the way to go. more people do that, security would be like --
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okay. let's take a look at the stocks being talked about most on the social stratosphere and might inform your trading session. >> hi there, simon. look at when's trending here on stock picks. we can see that the bigger the box, the bigger the chatter on twitter. we have technology, health care and services trending. let's zone in on that space right now. many stocks trending. amazon. i want focus in on whole foods. wfm. that's whole reached the shares of whole foods reached a new record high today. one trading tweeting that it's breaking out and watching another high-end grocer, fresh market, tfm. writing that this is a good opportunity to buy it with a tight stop below this week's low. could be a good risk/reward. doesn't seem like macro uncertainty is impacting them. it's up 74% over the last year.
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is it too expensive to buy in now? if you're sold on the story, is tfm the stock to own? >> i love whole food markets, actually. i think that's a great name but up at 90 it's extended. you start to see the pullbacks of buying opportunities but you have to get towards that $88 level before i get interested again. >> bk? >> yeah. quickly, on the whole foods, illn't be in it. they have risk of slowdown in sales. they have beat but i'd be cautious here. >> look at hanes celestial and kroger expanding. that's a good buy, as well. >> let's circle back on pharmaceuticals with a very good session and a great year. dr. j, what do you think? >> well, they've got a ruling on their obesity drug, simon, out in just, what, june 27th is when we expect it. so i would be writing the calls in the next couple of days next couple of sessions, write those eight or nine calls against it,
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protect yourself about 22% and it's been a great run so far. >> okay. we have in the meantime a quick clarification to make with brian sullivan. brian? >> simon, has to do with wpf. we talked about how carlos slim bought an 8.4% stake in the company. if you look on multiple wire services, the wt, any of the websites, you still see the headline slim buys ypf. be careful here, as you dig in more, it's interesting. slim apparently acquired the stock basically through a company in argentina in lieu of a loan. right? has to do with loan defaults. very complicated. the bottom line appears not if slim went out there in the open market and bought 8.4% optimi optimistic of ypf but the peterson group and that 51% stake that basically argentina
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renationalized from spain. still, a lot of wire service, a lot of stories saying buys ypf but he bought it through another company in lieu of a loan. be careful on the story. >> and dropping below $12 on that basis. brian, thank you. final trade's next.
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[ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪ three three hours to go. final trades, john? >> mcmoran. an oil exploration play. >> if you want to lean long in the greek election, buy some call options on spy. >> steve? >> hanes celestial. use 52 as the stop loss. >> i'm loving nokia. i know everybody hates it. got a couple upgrades today. i think nothing but upside. breakup value. i love the name. >> don't forget to watch options action and money in motion tonight at 5:00, of course, "closing bell" witke

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